PAC Sub-Committee Scrutinises CAG Findings on Rs 166 Crore Abandoned Defence Buildings

New Delhi: The Public Accounts Committee (PAC) Sub-Committee on Defence on Friday reviewed key audit findings concerning the Ministry of Defence, focusing on abandoned government buildings worth Rs 166.16 crore and deficiencies in Military Engineer Services (MES) contracts.

The meeting, chaired by BJP MP Aparajita Sarangi, examined observations from two Comptroller and Auditor General (CAG) reports. The panel first received a briefing from audit officials before recording oral evidence from senior defence officials, including Chief of Defence Staff General Raja Subramani.

According to the agenda, the committee discussed issues related to "Internal control and quality assurance in execution of MES contracts" based on Chapter II of CAG Report No. 1 of 2026. It also reviewed findings under "Abandonment of buildings constructed costing Rs. 166.16 crore due to substandard construction and delay in fixing of responsibility" contained in Paragraph 3.3 of CAG Report No. 28 of 2025.

The audit observations point to lapses in quality assurance, project monitoring, and accountability in defence infrastructure projects executed through the MES. The PAC, a parliamentary committee that examines CAG reports, plays a crucial role in ensuring financial accountability of government departments.

This meeting is part of Parliament's broader oversight of defence preparedness, modernisation, and expenditure. It follows recent deliberations by the Parliamentary Standing Committee on Defence, which reviewed the transformation of Defence Public Sector Undertakings (DPSUs) on July 8, and heard evidence on the role of the Indian Army on June 24.

The PAC sub-committee's examination underscores the importance of accountability in public spending, particularly in critical sectors like defence infrastructure. No decisions or recommendations have been announced yet; the committee is expected to submit a report later.